County: dissolve Sunset
By Lora Abcarian
DENVER -- On May 14, attorney James Huemoeller filed paperwork on behalf of the Board of County Commissioners joining the U.S. Trustee's motion to dismiss bankruptcy proceedings for Villages at Sunset developer Larry Kanne.
A hearing on the matter will be scheduled in the near future.
If granted, the motion paves the way for Park County to terminate the Subdivision Improvement Agreement, thus ending the Sunset development.
Under the terms of Kanne's SIA, he was to have filed an $2 million irrevocable letter of credit with Park County to facilitate construction of a grade separated intersection at U.S. 285 and the proposed Sunset Parkway. Kanne filed several requests for administrative relief with the BOCC, all of which were denied.
Rather than filing the letter of credit on Dec. 5, Kanne filed for Chapter 11 bankruptcy. His filing tolled an automatic extension of the Dec. 5 deadline.
Huemoeller's motion states the bankruptcy proceeding has been pending for five months, and "the only significant asset...is a parcel of undeveloped real property in Park County, Colorado." Owing to the lapse of time, Huemoeller wrote the BOCC is increasingly concerned the letter of credit will not cover escalating construction costs, thus jeopardizing Park County's interest n the matter.
A 60-day extension was granted to Kanne following his bankruptcy filing, and Huemoeller wrote that extension has expired. He said Kanne has attempted to sell the project or find a new lender, but his efforts have not been fruitful.
If the court rules in favor of Park County, any new developer would have to begin the SIA process anew. A new project would be subject to current Park County Land Use Regulations.
Commissioner Leni Walker hopes the court will grant Park County's motion to remove its interest in the bankruptcy proceeding. "The second the court says 'it's done,' it's done."
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